Facebook Seeking $100 Million In Additional Funding
Servers aren’t cheap and neither is bandwidth. After all Facebook hosts well over 40 billion photos. The social network is looking for $100 million in debt financing for server costs according to BusinessWeek. Facebook has been shopping for credit from companies such as Bank of America Corporation (NYSE:BAC). BAC is Facebook’s primary commercial bank right now. And as you are all aware, BAC received about $25 billion in federal bailout from the government. A Facebook representative stated that this is the normal course of business.
“Facebook always seeks to keep its costs of capital as low as possible, particularly in these uncertain economic times,” the company released in a statement to BusinessWeek.
Facebook lost additional credit from TriplePoint Capital. TriplePoint is a venture lending firm based in California. TriplePoint may offer Facebook more credit in the future. Facebook CFO Gideon Yu has already found a way for the company to raise $500 million in debt and equity from various companies.
[via BusinessWeek]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry